The humiliating defeat of Motorola in the fight against Microsoft

Get a license fee for patents. But ridiculously low. Google’s Motorola has demanded a license fee from Microsoft for its patents. The court admitted it was right, but disagreed with their valuation. Microsoft will pay $ 3.82 billion a year less than the smartphone maker demanded.

Motorola accused Microsoft of illegally using patents related to 802.11 and H.264. These are market standards, so the patents related to them are part of the FRAND agreement. This means that they should be licensed on “fair, reasonable and non-discriminatory basis”. And that was precisely the cause of Motorola’s failure.

Microsoft has expressed a desire to pay the license fee, but disagreed with patent pricing. Motorola claimed 2.25 percent of the value of every product sold using its intellectual property. These products include, but are not limited to, any Windows 7 computer or any Xbox 360 console. That would mean that Microsoft would pay, roughly, four billion dollars a year!